Much more. Daniel your in will join us and find out where he things oil is headed. Alex hill is here and that means one thing. Oil and copper. Down by a 10, the underperformance on the dax in frankfurt down by almost 138 points. The losses in asia as well, with shanghai having its biggest drop. To the bond market, yields on treasuries grind low on. 60 . 62 . Ono sterling approaching that particular pair. We will be over those for you. Lets get you up to speed on the top stories and check in with the Bloomberg Team. Is on the markets. Megan murphy in washington on the latest reaction from clinton and trump on the worst mass shooting in u. S. History. With begin with brexit growing anxiety over the u. K. Exiting the european union. Anna edwards is live. Lead in one poll for leave and it is looking to close to call. 10 days to go until we get to the Eu Referendum in the u. K. The pound is under pressure. En and gold surging the pound down against the yen and the dollar. By the most in nearly three years according to the latest data and it is not just in the currency markets. European stocks hitting twomonth lows. Mentioned they the leave camp ahead. There is a great deal of confusion, even the polling companies dont know exactly what the polls are telling them and they cannot call the results here. Many people are looking for the betting markets. That is the implied probability of a brexit. All of the betting probabilities from the market some people dont like to talk about these what many investors want to because they say with the polls in such disarray they like to follow that money. With european equities underperforming, that will be the discussion point later. As far as the campaign is concerned, rolling out gordon brown. What is the significance of that . Exu. K. Prime minister was credited with keeping the u. K. Together at least in part with his at the nightratory of the independence referendum. They are willing him out again. The labour party have got him speaking out today. The leave camp have been accusing the remain camp but once again scaring people into voting, saying the latest campaign is just fear on steroids. Londonn anna edwards in. Thank you. Brexit concerns also impacting stocks in egypt. Lets check in with the latest. That is not apparent not a comparison you want to be making. In japan, we are seeing a different wave. We saw a big concern. Negative exports in japan brought down japanese stock. Course we have picked are links to british stocks. There are worries that there might be a brexit spillover in hong kong. Taken together, it is a soggy mood on the back of brexit. We need a central bank governor. It could be market turmoil if u. K. Was to leave the european union. Fears are starting to mount about the impact of that vote. We do see all the chinese data that came out overnight, you had resale opening up as well. It was really that Asset Investment that got a lot of people concerned. Factories have been holding up, that adds to stabilization, but when you look at the investment spending, you see the private sector doesnt want to spend at the moment. They are worried about falling profits. They are uneasy about an economic backdrop. Government will have to step in and increase spending and that is at a time when the government is trying to keep a debtn that in china on in china. The government still has a lot of work to do. Thanks very much. Chief asia economics correspondent. David now the latest reaction of the worst mass shooting in u. S. History. Megan murphy joins us on this very sad story the latest details. What are investigators learning . Investigators are continuing to sift through the evidence, sift through this man omar who shot andmateen killed 50 people in orlando. They are trying to figure out what were the motivations for the attack. People this was what call and isis inspired attack. This is a man who did phone 911 and pledge allegiance to isis in the moment before the attack but investigators are still yet to conclude just how extensive those ties were. Or the issue of another lone wolf attack that is going to become self radicalized. A very said day. We are waiting for a press conference from the fb i. This man was known to authorities. He had twice been looked at by the fbi. First due to threats he made in his workplace and also connections to other self radicalized americans. The fbi will have to answer questions over that. We expect many more details to come this morning. David entire country. We cant get too far away from a president ial election year. What was the Immediate Reaction . You saw the contrast between Hillary Clinton and donald trump. Hillary clinton calling for closer collaboration with our allies. How we can reform our laws so these weapons cannot get in the hands of people who are likely to carry out these attacks. Donald trump calling for the president s resignation over his failure to call this radical islamic terrorism. A real war of words between them. Donald trump will be talking about banning muslims in this country, taking a tougher line against radical terrorism. Love lost between these candidates and you can expected to continue to be heated and ugly all day. Thank you megan. Now we go to julie hyman for stocks this morning. S. Chief among them is g4 that is the company for whom as a securityrked guard in a retirement community. There are questions over the companys vetting. Shares are down 6 . There have been questions about this company in the past. It failed to play to supply security guards for the olympics in london. That caused a crisis for that company in 2012. We will be watching the stock all day. We are watching the u. S. Gunmakers today. When we have had attacks in the past, you tend to see these stocks surge because there is the theory that there could be some kind of increased gun regulation on the backs of attacks like this but that has not necessarily come to pass but the stocks reacted this way. Of course, the other market moving in that event is the causing a lot of trepidation around the globe in markets. We have seen bond yields fall and the Ripple Effect among european banks. Large Banco Popolare falling. That is one of the groups performing the worst within european stocks. To get an update on headlines outside the business world. Here is first word news. Runner oscarmpic pistorius faces up to 15 years in prison for killing his girlfriend. A hearing began today when the judge convicting him of manslaughter ordered to sentence him for murder instead. Air france says it is able to get 80 of its flights in the air despite the strike by pilots. A fourth of the pilots have walked out because they have to work longer hours without more pay. French garbage collectors, Railroad Workers, and Energy Employees have also walk out because of new labor reform. Bernie sanders will meet with his rival Hillary Clinton tomorrow night and clinton is the presumptive nominee and tomorrow is the last primary in washington dc. Sanders is hoping to get some of his positions in the party that form. Global news, 24 hours a day, powered by 2,400 journalists in 150 news bureaus around the world. I am shery ahn. Jonathan coming up, chinese stocks plunged as fixed asset at the slowestw pace since 2000. George osborne joins go. What the fallout could be. More coming up. This is bloomberg. Chinas stocks are down today. They fell over the decision whether to include china a shares in its global index. Welcome back simon. Good to have you here. Why are they down . The brakes at issue is weighing on Global Markets but i think there are issues in china that are specific to china. The numbers that we saw stabilization but when we dig deeper, not very encouraging. That Industrial Production growth only being achieved through the application of heavy government stimulus. If that stimulus was withdrawn, we would see afar worst picture. I think people are realizing china is not going to be an engine for the Global Economy anytime soon. 6 growth is going to be sufficient to keep these domestic situations stable. However, it really cannot drive Global Economy down. Much of the problem is the growing realization that there is a limit to what china can do to stimulate . Problem. Ot a big debt how much of that is the problem . You cannot supply more debt to make the problem better. You already have a problem with the chinese banks. Thealked about loans within banking sector, official numbers about 1. 5 . There are a wide range of market estimates out there. It will be close to the 12 . Are we going to see a banking crisis . Probably not. That level of indebtedness and nonperforming loans within the banks is going to be a constraint on bro on growth. All of these concerns on the eve of a decision over whether to include chinese shares. How difficult is that . Chinese ancludes shares you will see etf flows in chinese stocks. You will not see significant flows from active managers. They are relatively opaque. The better stocks are listed in the a chair market a chair market. A share the level of research on these companies i dont think you are going to see active managers looking at the a share market as a way to gain significant performance. It takes a long time to let those filter out. This is one of my favorite charts of the last couple of weeks. This charts the u. N. Offshore versus on for rate. The onshore rate is the blue line. It means the u. N. Is getting weaker. The purple line is the shanghai composite. August. Ivergence in we saw divergence in january. We are starting to see this pick up again and that leaves a lot of uncertainty in the market when you have this currency weakening. Jonathan lets start with the spread. What is that telling you . Offshore investors are not confident about the direction. There is a bet that china is going to pursue a week policy in order to keep that providing stimulus to the economy. It to export its capacity to the rest of the world in the form of steel and fuel experts as well as. The world is betting you will see a cheap policy from chinese. Jonathan you said it was a positive. A positive for who . Im going to end up with money in that market. What want to be there . A lot of the a share market is not exposed to the primary sectors of the economy. A lot of the stocks are composed of domestic consumption. This is a very important point. People will over simple by the picture and look at it as one block. Economy, aan old state owned enterprise sector, a primary goods sector that is in very bad shape but you do have sectors within china that are doing very well. If you look at earnings growth, which isprise index predominantly state owned enterprises, the market is looking for negative earnings prices of around 6 . Going into 2017, we will get 9 growth. That look at the coverage my Company Looks at, a lot of these companies are growing above 20 . The valuations are still very stretched but there are sectors exposed to retail and technology that are growing very well. You love that kind of growth in the u. S. Simon, you mentioned the capacity for excess exports from china. How long is the world going to put up with that . World is not putting up with it now. 256 tax is now . It is coming in india and markets all over the world but it is something the world is going to have to live with. China is going to eliminate some capacity however there will still be over capacity. That is going to come into Global Markets. The question global governments have to ask is is this protectionism. Toe than allowing companies ration by more cheaply. Jonathan the fed no longer looking so live. Sayinga, everyone was that troubles around the corner with the chinese currency. If the fed stepping back a good thing . In terms of lower interest higher Interest Rates for china, i think china is marching to its. Wn to own tune it is a lack of confidence in the private sector. We saw that in the 3. 6 Global Growth and domestic opportunities. Dot the government needs to is to make hard decisions to close down overcapacity and take a more creative policies were driving growth than more debt. Id simon are but is going simon arbuck is going to be staying with us. Crew dropping since february. The Vice President is going to be revealing where oil prices are heading next and why. Shares of apple falling this morning. Iphone sales will fall for the first time in 2016 according to a person at a major said liar. Will tim cook address this at todays Developers Conference . What to expect from the most valuable company in the world when it takes the stage. This is bloomberg. We have apple down 1 in free markets. Nikkei is coming out saying that iphone sales are expected to fall for the first time in 2018 according to a major supplier on iphone shipments. A conference later on today, which we will be definitely paying. Head of the asian equity sales joining us now. When you have apple looking to china for growth, a lot of u. S. Companies are looking for that as well. Can they do that . Because i think the purchasing power of the chinese middle class is is growing rapidly. The iphone is an aspirational product that many Chinese People want. The problem facing apple is that in china, you have enormous competition from an industry that is offering increasingly better products at a fraction of the price of the iphone. Countries such as the u. S. , the ecosystem apple offers is important. If you have a pc or an iphone it integrates. In china, that is not as important. The iphone and the smartphone is used in isolation. In china, peoples lives operate on we chat. Alibaba. When apple offers you is not as compelling as it is elsewhere. Will be an, china important market for apple but i think you are going to see Chinese Brands take market share. Thanks very much. Good to see you. Jonathan coming up, is the oil rally losing energy. Ore from Daniel Yergen reveals to us what a brexit could mean for the british economy and its impact on the rest of the world. , the s p 500 futures negative seven points. Londons ftse down 7 . In the bond market, yields grounding down to new lows. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Jon its risk aversion in the markets with european stocks a lower. The underperformance on the prospect of a stronger swiss franc. Markets, the dax is down by 1. 2 . Sterling is down by another half of 1 . Look to dollaryear and today. A stronger japanese yen is appreciating against the dollar by about nine cents. Yields are at alltime lows in the bond market. Bunds to grind down to zero in the german market. Brent is down by one full percentage point. Alix i love my crude oil in the morning. Outside of business, lets go to first work news. The fbi interviewed the shooter in the orlando shooting because of terrorism suspicions but they closed the investigation for lack of evidence. He is blamed for the worst mass shooting in history as 50 People Killed and 53 wounded at the attack at a gay nightclub. He was killed in a shootout with police. He called 911 before the shooting to proclaim his allegiance to Islamic State. Vladimir putin and the European Commission president may discuss a controversial natural gas pipeline project this week. They will meet at a conference in st. Petersburg. Russia could expand its gas outlook output to europe. At the tony awards, hamilton was the big winner. Tonys just short of the record. The presentation was dedicated to the orlando shooting victims. David we will show you a press Conference Live from orlando, florida. Rick scott is there and the mayor of orlando and the police chief and the fbi going over the tragic events over the weekend with 50 people shot dead in a nightclub and more than 50 were wented by a young man who in armed with an ar15 and slaughtered these people after calling and pledging allegiance to Islamic State. This is been tied to terrorism and obama has spoken out and this will consume the nations attention over the next couple of days. Jon in the bond market, this is the morning must read with tom keene. This is a chart and the global has zero yields and zero problems. The returns on the global bond market this year, almost 5 . These bets start of the year on records that go back to the late 1990s. We are looking at a fixed income market that you would judge by the coupon you get but its the capital returns so far that has dominated market sentiment. As you know, there is an immense amount of fear out there. Thursday was incredibly nuanced as well as friday and my major message this morning is there is no let up inside you there are so many things moving on the bloomberg that francine has to remind me where german yields are. Ofs morning, there is a lot nuance within those bonds up yields down. Has been a combination of the chase for capital gain on the backs of Central Banks and the idea that it will nth work so you price and lower inflation. The additional point was risk aversion. It is not all yields lower. Spreads are wider in europe especially today. Tom everybody is talking about brexit that there is less discussion about the new hallmarks we saw friday. As you use my five weeks of vacation, terminal value was lowered. Where are we heading with the data check . We dont know. Jon everybody is scratching their heads on what is happening. The big question is, what constitutes a bond market bubble . Tom i dont have an answer to that but remember the storm eight months ago or so. It was the short of a lifetime. What is a right now . The german 10 year is two points. Alix talking about commodities, u. S. Crude is falling to a threeweek low and the producers are putting more oil rigs work and production climbed last week it i spoke to harold hamm from continental resources, the largest shale producer in the country. I think 60 at the end of the year is conservative. 15 low on tha